The European Commission (EC) is investigating the proposed acquisition of software developer Nuance Communications. Reuters says it has reviewed a questionnaire distributed by the EC to Microsoft’s competitors and Nuance customers to identify objections to the acquisition.
According to Reuters, the European Commission distributed the questionnaire as part of an antitrust investigation. Microsoft’s acquisition of Nuance Communications must be approved by global antitrust authorities. The authorities in the United States and Australia gave the green light earlier. The European Commission has not yet – and has until December 21 to stop or approve the takeover.
According to an unnamed Reuters source, the European Commission’s investigation represents the most extensive coverage of the acquisition to date by an antitrust authority.
While Microsoft and Nuance Communications have not yet commented on the news, the organizations recently announced that the completion of the acquisition may be delayed from 2021 to 2022.
Why Nuance?
Nuance is primarily engaged in the development of transcription technology for hospitals and call centers. Artificial Intelligence capacity and brand awareness in the American medical sector are central. This is probably the reason for Microsoft’s interest. The tech giant and Nuance agreed on a takeover earlier this year.
At first, things seemed to be heading in the right direction for Microsoft. Global regulators agreed. Now the European Commission seems to have objections.
Steven Weber, a faculty professor at the University of California Berkely, suspects the EC is concerned that after the acquisition, Microsoft will be able to integrate Office software into the licenses of existing Nuance customers. ‘Suspect’ is the key word, because the EC has not yet announced anything about a possible investigation or its motives.
